Personal Finance

I'm 25 and just crossed $100,000 as an accountant for the federal government

Marc Guberti

Published: February 14, 2025 1:09 pm

A 25-year-old accountant recently posted his income progression in the Salary Reddit group. He graduated from college in 2021 with a degree in accounting and earned $103k in 2024. He had previously worked part-time throughout college.

The Redditor’s income grew quickly after graduating college, and there are plenty of lessons you can learn from his story.

How Much Can the Redditor End Up With?

A $103k income puts him above the median household income, and if he invests 10% each year, he can contribute $10.3k to his portfolio each year. Since he is only 25 years old, he has approximately 40 years before reaching the typical retirement age of 65.

If he invests $10.3k each year into assets and earns an annualized 8% return, he will end up with a $2.7 million portfolio after 40 years. Of course, the Redditor can boost his 40-year portfolio by boosting his income or trimming down on expenses.

A higher income seems to be in the Redditor’s future. He jumped from $84k to $103k in one year, resulting in a 22.6% year-over-year increase. However, the Redditor can face short-term challenges since he works for the government. He mentioned that he is being impacted by the Department of Government Efficiency, and it’s unclear if he is being laid off.

While the Redditor’s career may have some short-term friction, he has many options to receive a higher paycheck. He can work in the private sector if DOGE cuts him or end up with frequent raises if he remains in the public sector.

Working During College Can Give You a Head Start

Although the Redditor graduated in 2021, he has been working since 2018. Working a little earlier gives you extra money that you can save and invest. He earned $2,740 in 2018 and earned more than $10k per year in 2019 and 2020. He also earned $22k in 2021 before his income almost tripled in 2022.

Job Hopping Resulted in a Raise

The accountant responded to several comments on the post, and one commenter asked him about the $20k jump from 2022 to 2023. He said that he switched from a state agency to a federal agency in 2022, which lead to a higher income in 2023. He has been promoted three times ever since and receives annual COLA increases.

You Have to Submit a Lot of Job Applications

The Redditor mentioned in a comment that the job search was brutal and that he had to apply for a federal job for two years. He also mentioned that he had interned at state government accounting positions and had experience, which eventually helped him secure a federal accounting job.

Many employers want real-world experience for entry-level positions. An internship during college can give you the necessary experience, and some internships even turn into jobs.

If you’re thinking about job hopping, you may want to start applying now. You never know how long it will take to get a promising job offer, and you also never know when you may get laid off. Doing some side hustle work can boost earnings and give someone multiple income sources. That way, they aren’t reliant on a single income source for their financial survival.